Customer Analysis The Foundation For Marketing And Sales Success

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Customer Analysis: The Foundation For Marketing And Sales Success

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Customer Analysis The Foundation For Marketing And Sales Success

  1. 1. An infoUSA Mid Market Solutions White Paper Customer Analysis: The Foundation for Marketing and Sales Success infoUSAmm.com 866.716.7680
  2. 2. Customer Analysis: The Foundation for Marketing and Sales Success 2 Introduction Who are my customers? Every company wants an answer to that question. That’s because the better you know your customers, the better you can meet their expectations and the more you can sell and market to them. This paper will explore the importance of customer analysis, and offer four easy steps you can take to gain a better understanding of your customers. Reap the Benefits of Better Insight You’ve been asked to plan a dinner party for 40 business associates, but you know little about your colleagues. Should you arrange a backyard barbecue or a formal, sit-down affair? Should you invite a guest speaker? What about entertainment? Your first step probably would be to request a guest list. Second, you would contact your co-workers and quiz them on their preferences. Finally, you would search for a common thread that ties this group together. Once you’ve done your homework, you’re ready to plan an evening full of fun and entertainment. Marketing to your customers is a lot like hosting that party – you can’t market to them effectively until you truly understand them. Do you understand their needs? Do you know what problems they are trying to solve? Are you sending them the right offers, at the right time, through the right communication channels? Do you have the most up-to-date information on your target audience? By learning more about your customers, you can gain a better understanding of your market. And by identifying hidden opportunities within your customer files, you can create targeted marketing campaigns that produce profitable results. Need more reasons? Analyzing your customers can also help you: Increase sales with your existing customers Once you gain a deeper insight into your customers, you can better target them with relevant offers, as well as create cross-sell and up-sell campaigns centered on their business needs. By understanding your customers’ attitudes, purchase history and demographics, you can build strong customer loyalty, retention and rewards programs. Most importantly, you will directly contribute to their success. Boost customer acquisition By understanding the unique characteristics of your best customers, you will be able to better leverage your time, energy and resources into pursuing similar prospects. Understand your market potential Building an accurate profile of your customers helps you analyze your market areas – understanding how well you are doing in those areas, pinpointing where you need to improve and gaining insight into market potential. infoUSAmm.com 866.716.7680
  3. 3. Customer Analysis: The Foundation for Marketing and Sales Success 3 Save time and money How much money do you waste marketing to people who are not going to purchase or presenting the wrong offer to people who might? Understanding your customers will help you save the valuable time, money and resources often spent pursuing the wrong prospects. Build stronger relationships It’s no secret that retaining your customers is critical to your success. This is especially true when you remember that 80% of your sales come from 20% of your customers. A thorough understanding of your customers means you can solve their challenges faster. By tailoring your offers and personalizing your messages, you’re showing your customers that you understand their needs and value their business. And by building strong relationships, you’re creating ever-greater value for your customers. Plan strategically Finally, understanding your customers helps your planning. You can predict what they will buy and continue to introduce new products and services. By educating yourself on your customers’ needs and understanding their business, you will gain an edge over the competition. A gold mine of information Your business is sitting on a gold mine of data that can be used to understand your customers and target new prospects. But how can you unearth that valuable information? Here are four simple steps you can take to gain a better understanding your customers. 1. Keep a clean database Gathering data on your customers is relatively easy; keeping it accurate and timely is the difficult part. At some time, your customers will change their telephone numbers, addresses or email addresses and drop off your subscriber list. If your database contains outdated information, you’re slowly losing the ability to connect with your customers. More importantly, you’re sacrificing a valuable source of revenue. That’s why it's so imperative you update your customer database regularly. Some companies have the time, expertise and resources to manage the process in-house. Consider hiring a company that specializes in data hygiene. These companies will cross- check your data against their records to ensure you have the freshest addresses, phone numbers and other contact information. They can merge files and remove duplicates. They can also help you increase deliverability by ensuring the addresses in your lists are current and standardized. 2. Enhance your customer information Once you scrub your customer files, chances are you’ll discover gaps of information. If your database is limited to only names and addresses, you’re sacrificing an opportunity to contact customers through multiple channels. Adding contact information such as email addresses and telephone numbers can help you increase sales conversion rates through infoUSAmm.com 866.716.7680
  4. 4. Customer Analysis: The Foundation for Marketing and Sales Success 4 multiple, well-timed campaigns. By adding demographics and firmographics, you’ll gain a clearer picture of exactly who is buying your product or service. This added insight will help you develop solid strategies to retain, service and grow your customer base. Google “data append services,” and you’ll get more than 300,000 results! Similar to data hygiene services, these companies will compare your database against their records and add missing data where available. So how do you find the best fit for your company? Do your homework and ask business associates who they use to enhance their customer data. 3. Identify common characteristics Accurate customer information is just the beginning. Now you need to drill down to find common traits among your customers. By identifying the specific characteristics unique to your customers such as net worth, expendable income or likelihood to use technology, you will learn more about your best customers and be able to identify potential customers just like them. You can also gain insight into customer lifetime value, behavioral trends and spending patterns. Armed with this data, you can focus your resources on your most profitable customers and prospects with the highest potential to be profitable. This critical step in understanding your customers requires the help of company statisticians or your IT department. A few companies specialize in customer analysis, and a few web- based applications give you the power to do your own in-depth analysis rather than waiting for the IT department to run your reports. Again, do your homework and ask your business associates for recommendations. 4. Talk to your customers In today’s age of blogs, emails and website surveys, calling your customers seems old-fashioned. But making time to chat with your customers – minus the surveys or scripted questions – creates trust and better communication. You can discover new ways to help them because you learn more about them. And just as importantly, you can discover what they need from you. Summary Understanding your customers is a never-ending road of learning. By integrating these simple steps into a committed plan, you’ll be well on your way to uncovering hidden opportunities within your customer files and identifying a whole host of sales prospects. You’ll be able to create targeted marketing campaigns that engage prospects and increase sales, response rates, retention and profits. Still have questions? Call Kristin Hermann at 866-716-7680 or visit us online at infoUSAmm.com. We can help you gain a deeper understanding of your customers, and make you database and direct-marketing efforts more productive. infoUSAmm.com 866.716.7680 18WP1

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